Date:23/11/2006 URL: http://www.thehindubusinessline.com/2006/11/23/stories/2006112303690600.htm

Back Rupee gains 7 paise

Our Bureau

Mumbai, Nov. 22

The rupee strengthened by almost seven paise on Wednesday on sustained FII inflows into the domestic equities. The home currency opened strong at 44.81/83, tracking the movement of yen against the dollar and finally closed at 44.80, against the previous close of 44.87 on Tuesday.

"The market does not expect another rate hike in the US, due to which the dollar weakened against the global currencies," said a dealer at a private bank. "When the rupee reached the levels of 44.79/80, some of the large private sector banks were seen buying dollars," he added.

Dealers said trade was range-bound and the rupee is expected to touch levels of 44.65 in the coming days. In forwards, the six-month premium closed at 1.97 per cent (1.91 per cent) and the one-year at 1.82 per cent (1.78 per cent).